Buyer Agent - What true value do they bring? (for sale, real estate)

[confuseddesi]

Please ignore my ignorance. I apologize upfront. This is not meant to offend any agents here. I'm asking the below question to educate myself and with any bleak chance may be another dumb wit out there just like me.


In the olden days, when there was a lack of technology and the main means of knowing where and when a property was out for sale was only through mouth of word and publications, magazines, newspapers, libraries, palmphlates, etc - it made complete sense to have a 'profession' and a professional who would take you out to these awesome homes you would have missed out if not for him! I believe in the past as there was also a lack of information, these agents would inform you of all the details regarding the home. The lack of photos meant that you HAD to go in the home with this energetic agent to take a tour and be amazed with what the property offered.

Fast forward to 2005 and later years.

The age of internet, age of apps, age of advertisements, age of Facebook, age of emails - age of zillow, age of redfin and many more websites that scrape or utilize the web services off of MLS db directly.
The information though may be delayed by a few hours is not stale that is on these websites - the data is refreshed every few hours - if not less than an hour.

I have information on my finger tips. I have worked with or at least spoken and used services of two Real estate Buyer agents in the past month. They have both shown me two separate homes. Before identifying the home we wanted to tour, both of them sent us multiple homes - they basically ran a filter on MLS db with our preferences - and then sent us the big list of homes that were there. This is exactly what me and my wife do every day - for multiple times or redfin and zillow. What is the value in getting the same info from realtor?

For the two homes we saw, we did not get any additional info that wasn't on the listing. They would take notes when we asked questions - which meant either this was the first times these agents visited this home or have not done any additional home work before taking us to visit. They however did answer some of these questions afterwards when they chatted with the buyer agent - who in turn had to talk to the owner.

If I can do all of this - Unless there is some rocket science agents do AFTEr you select a home in the brokerage, why should I as a buyer take time over two weekends - Attend real estate classes and take the test and get my own license and save on BUYER agent fees?


Buyer agent fees = 3% . On a 600,000K home it is $18,000

Cost for the agent -
Class - 2 weekends - $350 Groupon has for less.
Exam - $ 100 or less
MLS listings - $150/month or less?
Broker fees 0.5% per property? - This is a wild guess. Please correct me.

Even with all this into consideration and assuming I take 3 more months to find my home - I will still save $15,000 by not having an agent? Is this even remotely true ? I'm thinking I'm missing a big point - otherwise every one would be getting these licenses. What is it that I am missing?

Please clarify what else an agent actually does behind the scenes....

Sorry, this came out to be too long !!! I'll stop talking now

[Aara5]

It's for putting in the offer, negotiating for you with seller's agent if multiple offers, taking care of all the paperwork and liaising once your offer is accepted and goes to closing, often for recommending mortgage agent, connecting to lawyers etc. Not as helpful before that point, you are right.

[timberline742]

You're not saving anything. The sellers agent will keep all that fee. They'll keep the full 6% instead of splitting it. That is my understanding.

I'm using a buyers agent, seller is paying for it, and he'll arrange the site visits for me and keep me updated.

[gf2020]

You are incorrect. You don't save anything. All realtor fees, buyers' and sellers', are paid by the seller of the property.

[confuseddesi]

Originally Posted by timberline742

You're not saving anything. The sellers agent will keep all that fee. They'll keep the full 6% instead of splitting it. That is my understanding.

I'm using a buyers agent, seller is paying for it, and he'll arrange the site visits for me and keep me updated.

Why not? When I am the buyer agent and buying a home for myself - the commission will go to the buyer agent - who is me? right ? Why is this not the case here?

[confuseddesi]

Originally Posted by gf2020

You are incorrect. You don't save anything. All realtor fees, buyers' and sellers', are paid by the seller of the property.

I don't understand this.


Why is this incorrect? If I am a buyer agent - Doesn't the buyer agent get the 3% commission?

What about this scenario?

My wife and I are buying a home.

I am the buyer agent but she is the buyer? Why would the buyer agent not get the commission here?

[Boston_Burbs]

1) the buyer does not pay the buyers agent, the seller does.

2) When I bought my first house in a less desirable town, in a weak market I scheduled all my own showings by calling the sellers agent to let me in. I asked them all if they were interested in a dual agency agreement (realtor represents the buyer and seller). Most of the sole proprietors were all for it but the corporate ones said they couldn't. I have a family member in real estate law so I didnt feel like having a sellers agent brought much to the table.

3) Fast forward to last year when I bought a house in a red hot eastern MA market, my buyers agent was very helpful. She let me know of properties that were coming on the market when she was invited to pre-listing walkthroughs. When a house that fit our needs was on the market, she was able to get us showing #1 and we made the first offer. We had a strong offer which included no buyers sale contingency, greater than 20% down, and a fast close. She used her relationship with the sellers agent to negotiate our offer and counter to be accepted before the open house. Turns out they had 4 backup offers after the open house.

We closed in less than a month and used her relationships with a mortgage broker to get a mortgage that fast. Had it just been me and a bank, I doubt we could have gotten it all done so fast.

[Boston_Burbs]

Originally Posted by confuseddesi

I don't understand this.


Why is this incorrect? If I am a buyer agent - Doesn't the buyer agent get the 3% commission?

What about this scenario?

My wife and I are buying a home.

I am the buyer agent but she is the buyer? Why would the buyer agent not get the commission here?

You cant just become an agent in a couple of months and work a transaction alone. you need to be a Broker to list a property which requires experience, creating a company, another exam, and getting bonded I think.

[timberline742]

Originally Posted by confuseddesi

Why not? When I am the buyer agent and buying a home for myself - the commission will go to the buyer agent - who is me? right ? Why is this not the case here?

Are you a real estate agent?

[confuseddesi]

Originally Posted by timberline742

Are you a real estate agent?

Did you read the original post?


If I can do all of this - Unless there is some rocket science agents do AFTEr you select a home in the brokerage, why should I as a buyer take time over two weekends - Attend real estate classes and take the test and get my own license and save on BUYER agent fees?

Buyer agent fees = 3% . On a 600,000K home it is $18,000

Cost for the agent -
Class - 2 weekends - $350 Groupon has for less.
Exam - $ 100 or less
MLS listings - $150/month or less?
Broker fees 0.5% per property? - This is a wild guess. Please correct me.

Even with all this into consideration and assuming I take 3 more months to find my home - I will still save $15,000 by not having an agent? Is this even remotely true ? I'm thinking I'm missing a big point - otherwise every one would be getting these licenses. What is it that I am missing?

Please clarify what else an agent actually does behind the scenes....